DOGE Rebounds After Musk Says 'It Has Potential As A Currency'

Dogecoin traded in the red zone over the past few days but its savior, Elon Musk, once again helped its price to surge and trade in the green by just tweeting about it.

Musk has once again redeemed Dogecoin with a short tweet: "It has potential as a currency." The comment was in response to a tweet by Billy Markus, the Dogecoin co-creator who uses the Twitter handle Shibetoshi Nakamoto, saying, "the reason [I] he like[s] dogecoin is because it knows it is stupid," adding, "I enjoy that something stupid could also have utility and be successful."

Dogecoin is an ERC-20 token created as a joke as cryptocurrency was catching people's attention. It is also the first dog-themed meme coin.

Following the exchange, Dogecoin's price surged 14% to $0.0799 from $0.07004 — an interesting development since the altcoin's Relative Strength Index (RSI) fell below 30% Wednesday, placing the crypto asset in oversold territory. It would be interesting if another DOGE price rally resulted from Musk's and Markus' Twitter interaction.

Dogecoin Photo: Unsplash

Musk, in a previous interview with TMZ, had said, "Fate loves irony. Dogecoin was invented as a joke, essentially to make fun of cryptocurrency. What would be the most ironic outcome? The currency that started as a joke in fact becomes the real currency. To the moon!" 

He also told Time magazine that DOGE was better than Bitcoin in terms of financial transactions since its cost per transaction is lower and its volume of transactions per second is higher.

Musk has been instrumental in many price surges of the meme coin. His hosting debut in the American comedy TV show skyrocketed DOGE's capitalization to $90 billion and helped the meme coin achieve its all-time high of $0.7376.

Dogecoin saw a 20% increase in its price in April when Musk invested in Twitter and hinted at the possibility of accepting the meme coin as a form of payment on the micro-blogging site. Another pump happened a few days later when it was announced that the billionaire would take over Twitter via a $44 billion acquisition.

Dogecoin was trading up 20.04% at $0.09162, with a 24-hour volume of $2,679,515,459, as of 12:52 a.m. ET on Friday, based on the data from CoinMarketCap.